KPMG's EMA Financial Services Risk & Regulatory Insight Centre is helping firms across the globe to plan for the transition from LIBOR to risk free rates. Our regulatory round-ups and insights digest and analyse the latest consultations, publications and news from regulators, industry groups and influencers from across the globe. If you would like to subscribe to our updates, visit our preference centre.
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Across global jurisdictions, the financial services industry, working groups, and regulators are focused on efforts to choose and transition to alternative risk-free rates (RFR). In a highly uncertain environment, individual financial institutions must assess and plan for the potential impact of a transition away from LIBOR on their products, infrastructures, and customers. LIBOR is used within a broad range of financial instruments involving trillions in USD worldwide. Financial institutions can expect its decommission to significantly impact most of their functions and businesses.
Welcome to the latest RFR Regulatory Round up. The priorities for member firms’ clients for 2019 have begun to crystallise and include strategy definition and refinement; client outreach planning; and contracts impact assessment and planning. There have been a number of key regulatory updates over the last couple of months that will help to further drive clients' priorities.
Welcome to the RFR regulatory round-up. Since our inaugural round-up in August, there have been a number of significant developments in the transition towards alternative risk free rates. The pace of change is increasing with the LIBOR Dear CEO letter and a decision on the Euro RFR. The recent consultation extensions have provided firms extra time to engage and respond.
To say that the LIBOR and Risk Free Rate (RFR) transition is complex is an understatement. There is no shortage of activity – or acronyms – in the market. This transition will affect all market participants and the updates below show that the pace of change is accelerating. We would encourage firms to start considering how this shift will affect their organisation and the steps required to ensure a smooth transition.